Business mergers are on the increase these days for the main purpose of

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POST UTME OAU

Business mergers are on the increase these days for the main purpose of

  • A) having more directors
  • B) organizing trade fairs and exhibitions
  • C) enjoying advantages of large-scale activities
  • D) easy settlement of disputes among businessmen

Correct Answer: C) enjoying advantages of large-scale activities

Explanation

The question is asking about the reasons why business mergers are becoming more common these days. The options provided are Option A: having more directors, Option B: organizing trade fairs and exhibitions, Option C: enjoying advantages of large-scale activities (which is the correct answer), and Option D: easy settlement of disputes among businessmen. A business merger is when two or more businesses come together to form a single entity. This is done for various reasons, but in this question, we are asked about the main reason why business mergers are increasing. Option A suggests that business mergers are done to have more directors. Directors are people who are responsible for managing a company, so having more directors may not necessarily be the main reason for a business merger. Option B suggests that business mergers are done to organize trade fairs and exhibitions. While organizing trade fairs and exhibitions is important for businesses, it is not the main reason why business mergers are increasing. Option C, which is the correct answer, suggests that business mergers are done to enjoy the advantages of large-scale activities. Large-scale activities such as production, advertising, and distribution, can lead to cost savings and increased efficiency, which in turn can lead to increased profits. Option D suggests that business mergers are done for easy settlement of disputes among businessmen. While this may be a reason for some business mergers, it is not the main reason why business mergers are increasing. In summary, the correct answer to this question is Option C: enjoying advantages of large-scale activities. Business mergers are becoming more common because they allow businesses to enjoy the benefits of large-scale activities, which can lead to increased profits.



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